REG-Grand City Properties S.A. Grand City Properties S.A.: GCP S.A. ANNOUNCES Q1 2023 RESULTS

Grand City Properties SAAnnouncement

17/05/2023 06:00

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Grand City Properties S.A. (IRSH)
Grand City Properties S.A.: GCP S.A. ANNOUNCES Q1 2023 RESULTS

17-May-2023 / 06:52 CET/CEST
The issuer is solely responsible for the content of this announcement.

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THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
   STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
                                   VIOLATION OF APPLICABLE LAWS OR REGULATIONS

        GRAND CITY PROPERTIES S.A. ANNOUNCES GOOD START FOR Q1 2023, DRIVEN BY SOLID OPERATIONAL RESULTS

  • Net rental income of €101 million in Q1 2023, higher by 4% as compared to €97 million in Q1 2022.
  • Solid like-for-like rental  growth of 2.6%  with 2.1% from  in-place rent increases  and 0.5% from  occupancy
    increases. Portfolio vacancy rate remains at historic low of 4.2%.
  • Adjusted EBITDA amounting to €80 million  in the first quarter of 2023,  increasing by 4% as compared to  €76
    million the respective period in 2022.
  • FFO I of €47 million  and €0.27 per share  in Q1 2023, both  lower as compared to  €48 million and €0.29  per
    share in Q1 2022 due to increase in financing costs.
  • Net loss of  €12 million recorded  in Q1 2023  mostly as a  result of negative  property revaluations in  the
    amount of €53 million, mostly due to capex invested in the assets.
  • Disposals of approx. €145 million in Q1 2023 with an additional €100 million signed but not closed disposals.
  • New bank debt of €60 million in Q1 2023 with additional €150 million signed.
  • Cash and liquid assets including signed disposals cover debt maturities through 2025.
  • Low average cost of debt of 1.4% and a long average debt maturity of 5.8 years.
  • Solid Debt Financing KPIs characterized by low LTV of 35%, strong interest coverage ratio of 5.9x, and  large
    pool of unencumbered assets amounting to €8.5 billion and representing 88% of total portfolio value.
  • EPRA NTA (now reflected excluding RETT) of  €4.6 billion or €26.9 per share as  of the end of March 2023,  as
    compared to €4.7 billion or €27.0 per share as of year-end 2022. EPRA NTA with RETT of €5.1 billion or  €29.5
    per share as of the end of March 2023.
  • Solid equity base reflected in equity ratio of 53% as of the end of March 2023.
  • FY 2023 guidance confirmed and all financial KPI’s are in line.

Luxembourg, May  17, 2023  – Grand  City Properties  S.A.  (“GCP” or  the “Company”)  announces results  for  the
three-month period ending  March of 2023.  Net rental income  totaled €101 million  increasing 4%  year-over-year
mostly as a result of the like-for-like rental growth of  2.6% and the impact of net acquisitions made over  past
periods. Portfolio vacancy remains at the historically low rate  of 4.2%. FFO I totaled €47 million in the  first
quarter of 2023, lower by  3% YOY mostly as a  result of the higher finance  expenses and higher perpetual  notes
attribution. FFO I per share amounted to  €0.27 per share in Q1 2023, as  compared to €0.29 per share in Q1  2022
which was also impacted  by the higher average  share count from  the high participation rate  in the 2022  scrip
divided which allowed the company to retain cash.

Across the first three months of  2023, GCP executed disposals in the  amount of approx. €145 million, around  1%
below book value. The disposals consisted primarily of mature  properties in London and were mostly signed in  Q4
2022 and were  classified as  assets held  for sale.  Year to date,  GCP signed  an additional  ca. €100  million
disposals which it expects to complete in the upcoming months. Cash proceeds from disposals and net cash provided
by operating activities helped  strengthen the Company’s liquidity  position to €571 million  in cash and  liquid
assets as of the  end of March  2023, representing 14% of  total debt. GCP’s  portfolio of investment  properties
continue to benefit from high demand as a result  of its strategic locations in growing metropolitan areas and  a
systemic supply-demand imbalance in German residential market.

In the first quarter of 2023, the Company made additional improvements to its financial platform. GCP raised  €60
million in new bank debt  with an additional approx.  €150 million debt signed after  the reporting period. As  a
result of these and past measures, the debt  maturity profile remains clean and the Company’s liquidity  position
including signed disposals cover debt  maturities through 2025. GCP  had a cost of debt  of 1.4% with an  average
debt maturity of 5.8 years as of the end of March 2023.

Refael Zamir, CEO of Grand City Properties: "We have begun the year with a positive operational result marked  by
solid like-for-like rental growth.  Our conservative financial  platform and strong  cash yielding portfolio,  as
well as our continued focus on strengthening our liquidity and balance sheet, have positioned the Company well to
weather the current challenging market conditions.”

Financial     statements     for     Q1     2023     are     available     on     the     Company's      website:
 1 https://www.grandcityproperties.com/investor-relations/publications/financial-reports/

For definitions of the alternative performance measures please see  the relevant section in the pages 30 - 34  of
the financial statements for Q1 2023, which you can find on the website under investor relations > publications >
financial reports or follow this link:

 2 https://www.grandcityproperties.com/fileadmin/user_upload/03_investor_relations/Downloads/2023/GCP_Q1_2023.pdf

 

About the Company

The Company  is a  specialist in  residential real  estate, value-add  opportunities in  densely populated  areas
primarily in  Germany and  London. The  Company’s strategy  is to  improve its  properties by  repositioning  and
intensive tenant management, and then create value  by subsequently raising occupancy and rental levels.  Further
information: www.grandcityproperties.com

Grand City  Properties  S.A.  (ISIN: LU0775917882)  is  a  public limited  liability  company  (société  anonyme)
incorporated under the  laws of the  Grand Duchy  of Luxembourg, having  its registered office  at 37,  Boulevard
Joseph II, L-1840  Luxembourg, Grand  Duchy of  Luxembourg and  being registered  with the  Luxembourg trade  and
companies register (Registre de Commerce et  des Sociétés Luxembourg) under number B  165 560. The shares of  the
Company are listed on the Prime Standard segment of Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A.
37, Boulevard Joseph II,
L-1840 Luxembourg
T: +352 28 77 87 86
E: info@grandcity.lu
www.grandcityproperties.com

Investor Relations Team:
Grand City Properties S.A.
E:  3 gcp-ir@grandcity.lu

DISCLAIMER:

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED  STATES
SECURITIES ACT OF 1933,  AS AMENDED (THE SECURITIES  ACT), AND MAY NOT  BE OFFERED OR SOLD  IN THE UNITED  STATES
ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC  OFFERING
OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT IS DIRECTED  AT AND IS ONLY  BEING DISTRIBUTED IN  THE UNITED KINGDOM TO  (I) PERSONS WHO  HAVE
PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES
AND MARKETS ACT  2000 (FINANCIAL  PROMOTION) ORDER  2005 (THE ORDER),  (II) HIGH  NET WORTH  ENTITIES, AND  OTHER
PERSONS TO WHOM  IT MAY OTHERWISE  LAWFULLY BE COMMUNICATED  FALLING WITHIN ARTICLE  49 OF THE  ORDER, AND  (III)
PERSONS TO  WHOM IT  MAY OTHERWISE  LAWFULLY BE  COMMUNICATED (ALL  SUCH PERSONS  TOGETHER BEING  REFERRED TO  AS
RELEVANT PERSONS). THIS COMMUNICATION MUST  NOT BE READ, ACTED  ON OR RELIED ON BY  PERSONS WHO ARE NOT  RELEVANT
PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH  THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO  RELEVANT
PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

IN MEMBER STATES OF THE  EUROPEAN ECONOMIC AREA (EEA),  THIS ANNOUNCEMENT AND ANY  OFFER IF MADE SUBSEQUENTLY  IS
DIRECTED ONLY  AT PERSONS  WHO ARE  “QUALIFIED INVESTORS”  WITHIN THE  MEANING OF  ARTICLE 2(1)(E)  OF  DIRECTIVE
2003/71/EC, AS AMENDED (THE PROSPECTUS DIRECTIVE) (QUALIFIED INVESTORS).  ANY PERSON IN THE EEA WHO ACQUIRES  THE
SECURITIES IN ANY OFFER  (AN INVESTOR) OR  TO WHOM ANY  OFFER OF THE SECURITIES  IS MADE WILL  BE DEEMED TO  HAVE
REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE REPRESENTED  AND
AGREED THAT ANY SECURITIES ACQUIRED  BY IT IN THE OFFER  HAVE NOT BEEN ACQUIRED ON  BEHALF OF PERSONS IN THE  EEA
OTHER THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN THE
EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OR ANY OF THE MANAGERS  OF
A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS  OR ESTIMATES RELATING TO PLANS  AND OBJECTIVES RELATING TO OUR  FUTURE
OPERATIONS, PRODUCTS, OR SERVICES, FUTURE  FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING  OR RELATING TO ANY  SUCH
STATEMENTS, EACH OF WHICH  CONSTITUTES A FORWARD-LOOKING  STATEMENT SUBJECT TO RISKS  AND UNCERTAINTIES, MANY  OF
WHICH ARE BEYOND THE CONTROL  OF THE COMPANY. ACTUAL  RESULTS COULD DIFFER MATERIALLY,  DEPENDING ON A NUMBER  OF
FACTORS.

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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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   ISIN:           LU0775917882, LU0775917882 , XS1491364953, XS1811181566,
                   XS2271225281, XS1220083551, XS1654229373, XS1706939904,
                   XS1706939904, XS1763144604, XS1781401085, CH0401956872,
                   XS1827041564, XS1851265527, XS1953786222, XS1964638446,
                   CH0482172415, XS2016885159, XS2033380820, XS2035328223,
                   XS2154325562, XS2282101539,
   Category Code:  QRF
   TIDM:           IRSH
   LEI Code:       5299002QLUYKK2WBMB18
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   244167
   EQS News ID:    1634779


    
   End of Announcement EQS News Service

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References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=572a7a11a9f4d65d9beb026beb0b36bd&application_id=1634779&site_id=reuters9&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=d1f6fa6618ea02cb63ce50a3f1ab48f6&application_id=1634779&site_id=reuters9&application_name=news
   3. mailto:gcp-ir@grandcity.lu


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